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To paraphrase an old saying, “When the going gets tough, retailers start slashing operational costs.” Ironically, cost slashing usually exposes a retailer to even greater risks instead of fortifying it against economic uncertainties. All businesses have felt the impact of today’s volatile economy. Retail has been hit especially hard, with sales in 2007 rising by only 2.4% - the smallest year-to-year increase since 2002. Despite such dour statistics, there are plenty of opportunities to gain share in today’s market. Possible gains, however, require aggressive actions. Moreover, gains will be even more significant if your competitors concurrently pull back on their programs and staffing following the cost-cutting crowd. Hard times offer a tremendous opportunity to increase your market share. If hard times are indeed the time to play harder, then we need to remind ourselves how we can increase our sales. |
